EBK MODERN BUSINESS STATISTICS WITH MIC
5th Edition
ISBN: 9780100475038
Author: williams
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 17, Problem 48SE
The Costello Music Company has been in business for five years. During that time, sales of pianos increased from 12 units in the first year to 76 units in the most recent year. Fred Costello, the firm’s owner, wants to develop a forecast of piano sales for the coming year. The historical data follow.
- a. Construct a time series plot. What type of pattern exists in the data?
- b. Develop the linear trend equation for the time series. What is the average increase in sales that the firm has been realizing per year?
- c. Forecast sales for years 6 and 7.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The president of State University wants to forecast student enrollments for this Year
academic year based on the following historical data:
5 years ago
4 years ago
3 years ago
2 years ago Last year
Enrollments
15.000
16.000 18.000
20.000 21.000
a- What is the forecast for this year using a 3-year weighted moving average where the weights are halved in a descending order from newest to oldest ?
b. What is the forecast for this year using the trend line for these data? c. using the MAD find which forecasting technique may be appropriate for this quetion
Year Gross Federal Debt ($millions)
1945 260,123
1950 256,853
1955 274,366
1960 290,525
1965 322,318
1970 380,921
1975 541,925
1980 909,050
1985 1,817,521
1990 3,206,564
1995 4,921,005
2000 5,686,338
Construct a scatter plot with this data. Do you observe a trend? If so, what type of trend do you observe?
Use Excel to fit a linear trend and an exponential trend to the data. Display the models and their respective r^2.
Interpret both models. Which model seems to be more appropriate? Why?
Amex PLC has gathered following information on the sales of face mask from April 2020 toSeptember 2020.Month Sales ($)April 17,000May 18,000June 19,500July 22,000August 21,000September 23,000You are required to;a. Using linear trend equation forecast the sales of face masks for October 2020.
Chapter 17 Solutions
EBK MODERN BUSINESS STATISTICS WITH MIC
Ch. 17.2 - 1. Consider the following time series...Ch. 17.2 - 2. Refer to the time series data in exercise 1....Ch. 17.2 - Prob. 3ECh. 17.2 - 4. Consider the following time series...Ch. 17.3 - Consider the following time series...Ch. 17.3 - Consider the following time series...Ch. 17.3 - Refer to the gasoline sales time series data in...Ch. 17.3 - Prob. 8ECh. 17.3 - 9. With the gasoline time series data from Table...Ch. 17.3 - 10. With a smoothing constant of α = .2, equation...
Ch. 17.3 - For the Hawkins Company, the monthly percentages...Ch. 17.3 - Corporate triple-A bond interest rates for 12...Ch. 17.3 - The values of Alabama building contracts (in $...Ch. 17.3 - The following time series shows the sales of a...Ch. 17.3 - Ten weeks of data on the Commodity Futures Index...Ch. 17.3 - Prob. 16ECh. 17.4 - Consider the following time series...Ch. 17.4 - Prob. 18ECh. 17.4 - Prob. 19ECh. 17.4 - Prob. 20ECh. 17.4 - Prob. 21ECh. 17.4 - Prob. 22ECh. 17.4 - The president of a small manufacturing firm is...Ch. 17.4 - FRED (Federal Reserve Economic Data), a database...Ch. 17.4 - Prob. 25ECh. 17.4 - Giovanni Food Products produces and sells frozen...Ch. 17.4 - The number of users of Facebook from 2004 through...Ch. 17.5 - Consider the following time series.
Construct a...Ch. 17.5 - Consider the following time series...Ch. 17.5 - The quarterly sales data (number of copies sold)...Ch. 17.5 - Air pollution control specialists in southern...Ch. 17.5 - South Shore Construction builds permanent docks...Ch. 17.5 - Prob. 33ECh. 17.5 - Prob. 34ECh. 17.6 - Consider the following time series...Ch. 17.6 - Refer to exercise 35.
Deseasonalize the time...Ch. 17.6 - The quarterly sales data (number of copies sold)...Ch. 17.6 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Air pollution control specialists in southern...Ch. 17.6 - Electric power consumption is measured in...Ch. 17 - The weekly demand (in cases) for a particular...Ch. 17 - The following table reports the percentage of...Ch. 17 - United Dairies, Inc., supplies milk to several...Ch. 17 - Prob. 44SECh. 17 - The Garden Avenue Seven sells CDs of its musical...Ch. 17 - The Mayfair Department Store in Davenport, Iowa,...Ch. 17 - Prob. 47SECh. 17 - The Costello Music Company has been in business...Ch. 17 - Consider the Costello Music Company problem in...Ch. 17 - Prob. 50SECh. 17 - Refer to the Costello Music Company time series in...Ch. 17 - Prob. 52SECh. 17 - Refer to the Hudson Marine problem in exercise 52....Ch. 17 - Refer to the Hudson Marine problem in exercise...Ch. 17 - Refer to the Hudson Marine data in exercise...Ch. 17 - Forecasting Food and Beverage Sales
The Vintage...Ch. 17 - The Carlson Department Store suffered heavy damage...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- After its move in 1990 to La Junta, Colorado, and its new initiatives, the DeBourgh Manufacturing Company began an upward climb of record sales. Suppose the figures shown here are the DeBourgh monthly sales figures from January 2001 through December 2009 (in $1,000s). a) Produce a time series plot. Are there any trends evident in the data? Does DeBourgh have a seasonal component to its sales? b) Deseasonalize the data using Multiplicative model with a 0.5 weighted moving average. Produce a time series plot of the deseasonalized data and add a trendline. c) Forecast the sales from January to December of the year 2010. d) Include a discussion of the general direction of sales and any seasonal tendencies that might be occurrinG Month 2001 2002 2003 2004 2005 2006 2007 2008 2009 January 139.7 165.1 177.8 228.6 266.7 431.8 381 431.8 495.3 February 114.3 177.8 203.2 254 317.5 457.2 406.4 444.5 533.4 March 101.6 177.8 228.6 266.7 368.3 457.2 431.8 495.3 635 April 152.4 203.2…arrow_forwardA pharmacist has been monitoring sales of a certain over-the-counter pain reliever. Daily sales duringthe last 15 days wereDay: 1 2 3 4 5 6 7 8 9Number sold: 36 38 42 44 48 49 50 49 52Day: 10 11 12 13 14 15Number sold: 48 52 55 54 56 57a. Which method would you suggest using to predict future sales—a linear trend equation or trendadjustedexponential smoothing? Why?b. If you learn that on some days the store ran out of the specific pain reliever, would that knowledgecause you any concern? Explain.c. Assume that the data refer to demand rather than sales. Using trend-adjusted smoothing with aninitial forecast of 50 for week 8, an initial trend estimate of 2, and .3, develop forecastsfor days 9 through 16. What is the MSE for the eight forecasts for which there are actual data?arrow_forwardhudson Marine has been an authorized dealer for c&d marine radios for the past sevenyears. the following table reports the number of radios sold each year.Year 1 2 3 4 5 6 7Number Sold 35 50 75 90 105 110 130a. construct a time series plot. does a linear trend appear to be present?b. Using Minitab or excel, develop a linear trend equation for this time series.c. Use the linear trend equation developed in part (b) to develop a forecast for annualsales in year 8.arrow_forward
- The analysis of Earnings Per Share (EPS) is as follows: 2015: $5.70 2016: $3.30 2017: $6.21 2018: $6.20 2019: $4.91 a. What is the trend analysis for that EPS and why it is increasing and decreasing?arrow_forwardUse quantitativeforecast methods for the data shown below Period Observation 1 24 2 34 3 36 4 37 5 41 6 44 7 45 Plot the original time series and comment on appropriateness of a linear trend.arrow_forwardAmex PLC has gathered following information on the sales of face mask from April 2020 toSeptember 2020. Month Sales ($)April 17,000May 18,000June 19,500July 22,000August 21,000September 23,000 You are required to;a. Using linear trend equation forecast the sales of face masks for October 2020 b. Calculate the forecasted sales difference if you use 3-period weighted moving averagedesigned with the following weights: July 0.2, August 0.3 and September 0.5. (2arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Time Series Analysis Theory & Uni-variate Forecasting Techniques; Author: Analytics University;https://www.youtube.com/watch?v=_X5q9FYLGxM;License: Standard YouTube License, CC-BY
Operations management 101: Time-series, forecasting introduction; Author: Brandoz Foltz;https://www.youtube.com/watch?v=EaqZP36ool8;License: Standard YouTube License, CC-BY